What is your per bar cost?

[brnmcclain]

Hi everyone, how's it going this evening? After about a year or so of making soap, I am ready to take the plunge and start selling.

I've been doing research for the past month, in preparation for beginning to sell and have finally gotten to that point where I need to price my soap. I've scoured the forum looking for answers to my question and found a thread that has a similar ring to what I am asking, but it was rather old, so I figured I'd try to get some new information.

So without further ado, what is your per bar soap cost, and how do you manage to get it low?
Right now I am stuck at $3.28 per bar

 

[The Efficacious Gentleman]

Some people will be a bit shy about giving out the cost price - especially if they're selling!

What might be easier is if you go through the calculation here so people can see why your bars are so high - maybe you're using a super expensive ingredient or something else is amiss. I don't sell and I don't even really buy in bulk (but I have looked for good options) and it doesn't cost me anywhere near that much to make a bar.

 

[Ael]

I personally don't think 3.28 is very high at all, especially not with the majority out there (from what I have seen) selling their bars from 5.50 - 7.00 per. I personally wouldn't really expect to see a handmade bar of good quality soap for less than 4.50 per.

 

[The Efficacious Gentleman]

Ael, Cost per bar is different than the selling price

 

[greenmountainwife]

I use several different base formulas, and my costs are always under $1 a bar. Some are actually closer to .50 a bar. That is including additives (peppermint leaves, lavender buds, poppy seed, ect) and scent, and I only use essential oils. Some even have loofahs. I only use basic oils and butters, and buy in bulk so it keeps costs low. I'm not sure what you are using to get such a high cost per bar.

 

[MirandaH]

I don't have Soapmaker 3 yet, but I hear that it does a really good job of giving you the cost of your soap. It really all depends, as each recipe with different ingredients is going to have a different cost per bar. I was able to work out that when I made the Castille, it cost me 54 cents per bar to make, not including any labor (which you should calculate). But it is unscented and has no color. Every single thing you add changes the cost per bar. And that can vary widely. For example, if I use the same recipe and the same colors for two batches and one has an FO in it that costs $5 for 4 ounces, those bars are going to be considerable less expensive than a bar that uses an EO that costs $7.99 for a half ounce. You really need to calculate it out for each different batch you make.

 

[MzMolly65]

I always cost everything I make .. because if I can't make it cheaper than store bought I need to rethink why I'm making stuff. If what I'm making is more expensive than store bought, there better be some serious quality benefits involved.

I've only made 7 batches of CP soap so far and my most expensive was $1.20/bar (the 3 butter bar with 3 EO's in it), that includes the newbie mistake of buying oils from an expensive supplier. They'll be cheaper now that I'm buying oil from restaurant supply.

 

[cmzaha]

Depending on my formula and fo cost my bars run approx .75-2.00 per bars, materials only. They high end in my most expensive avocado & using my higher cost eo's such as lavender. All my oils are purchased in bulk and I am fortunate that I do not have to pay shipping. I am usually purchasing 250-300 lbs of oil at a time.If you are going to sell the only way you will stay competitive and still make money is to buy in bulk. Figuring in labor, gas, shipping cost, booth fees, website fees, and utilities you are upwards of 3.00 per bar, so your figure is not so high, again depending on forumla.

 

[QueenBeeSoap]

Hi everyone, how's it going this evening? After about a year or so of making soap, I am ready to take the plunge and start selling.

I've been doing research for the past month, in preparation for beginning to sell and have finally gotten to that point where I need to price my soap. I've scoured the forum looking for answers to my question and found a thread that has a similar ring to what I am asking, but it was rather old, so I figured I'd try to get some new information.

So without further ado, what is your per bar soap cost, and how do you manage to get it low?
Right now I am stuck at $3.28 per bar

brnmcclain, welcome to the forum!

Are you including averaged hourly labour costs and overhead expenses into your calculation of cost per bar? Or just the cost of your raw materials?

Here's an article from Teach Soap that gives an example of how to figure out the cost per bar of cold process soap: http://teachsoap.com/2012/03/27/pricing-your-cp-soaps/ The example uses basic oils and doesn't include fragrance (FO's / EO's), colourants, or other additives which will add to your cost, but includes some "hidden costs" that are often overlooked.

 

[brnmcclain]

Thank you for the welcome QueenBee!
Now that I have my spreadsheet open where I can see it; I am including labor and packaging in that original $3.28/ per bar number. But even when I subtract out my labor, I am still averaging somewhere between 1.17-2.00 per bar of soap, which is not bad, but not fantastic either. Especially when I know I haven't even added shipping costs to that number.

I think buying in bulk is why I can't get my cost to go any lower. I don't think the ingredients I am using are expensive per se, however I am limited by my living space in how much I can store. That and I am a little paranoid that if I buy in large quantities, my oils will go rancid before I get to the end of them. So as much as I would like to buy in bulk, I am limited to only being able to buy in 2-3 month quantities; which generally means 7lbs of my basic oils and butters, and smaller quantities of the goodies. I may have to play around with my spreadsheet a little more and see how much of a difference it will make though. As of right now, I am still in the planning stages, and I plan to be for at least another six months or so as i continue to research and gather information.

 

[The Efficacious Gentleman]

What sort of recipes are you making? Are you use the more expensive types of butters or just the regular, common oils?

 

[Lion Of Judah]

interesting ! i always find it fascinating when someone can have their cost per bar below a dollar [$1.00] . i tried last year to price my soap per bar , without labor , S&H , and packaging and it still came almost to $3. i do not sell soap , just wanted an idea of what it cost to make . i know shopping in bulk greatly reduce your cost as well as working with oils and butters that are readily available . i am not yet ready to be selling my soap , but it is sure good to know what its worth.

 

[brnmcclain]

Efficacious Gentleman: For my basic bar, I am using coconut oil, palm oil, castor oil, and almond oil. For the luxury bar I use coconut, olive , castor, and almond oils with a little shea for moisturizing. The coconut and olive oils make up most of the batch. The shea, castor oils and almond oils are used in small percentages. So with the exception of the shea, everything else is pretty decent in pricing( did I mention I love Costco O.O.)
I tried messing around with my spreadsheets and found that if I did increase the amount that I purchased of certain oils that my per bar cost coil drop as low as .89/bar without labor or shipping included, which is pretty interesting to see. I also want to play around with different formulations as well. I try to stay away from "filler oils" but I am curious to see if adding one of those in and using less of another, like the palm oil for example, would help with per bar cost.

 

[PinkCupcake]

I don't sell my soaps, but I might someday, so I keep up with costs pretty closely, just like I would if I were selling. My cost per bar (ingredients only, labor not included) is somewhere between $.70 for an unscented, uncolored oatmeal bar to closer to $1.3 for a bar with FOs and colors. I try to buy in bulk online whenever possible, and avoid the grocery store oils. Even the coconut oil that looks like a reasonable price at the supermarket or the big jug of olive oil at Costco costs much more than what I would pay at Soaper's Choice.

I mostly use 2 basic recipes. One is olive oil, coconut oil, castor oil, with a little sodium lactate and sugar added. I have recently started making a soap with lard, olive oil, coconut oil, pko, castor oil, and sodium lactate and sugar. Sometimes I do a "fancier" soap with more expensive oils or butters, but those are mostly for gifts. If I were selling soap, those probably wouldn't be a mainstay in my line. But in general, the oils I use are a good price for the quality.

 

[cmzaha]

I don't sell my soaps, but I might someday, so I keep up with costs pretty closely, just like I would if I were selling. My cost per bar (ingredients only, labor not included) is somewhere between $.70 for an unscented, uncolored oatmeal bar to closer to $1.3 for a bar with FOs and colors. I try to buy in bulk online whenever possible, and avoid the grocery store oils. Even the coconut oil that looks like a reasonable price at the supermarket or the big jug of olive oil at Costco costs much more than what I would pay at Soaper's Choice.

I don't know if you are able to will call at Soaper's Choice, but I find the Pure Olive Oil at Costco is approx 1 cent per oz cheaper than Refined A olive oil from Cibaria or Soapers Choice without shipping. Price goes up more with shipping. For a gallon from SC it would cost me $28.00 with shipping, Costco cost me $24 and some change for 1.5 gallons (6L bottles)

 

[cmzaha]

I also want to play around with different formulations as well. I try to stay away from "filler oils" but I am curious to see if adding one of those in and using less of another, like the palm oil for example, would help with per bar cost.[/QUOTE]

I often wonder what and why an oil is considered a "filler" oil, I love canola in soap and some call it a filler oil. I stay away from soy for allergic reasons. I also love lard, and use palm shortening with regular palm in my vegan soaps. I like the feel palm shortening adds to the soap and I do not consider it a filler. Using the palm shortening and/or lard does bring down the cost per bar

 

[elmtree]

I too am curious about filler oils. I use all kinds of oils and just started selling and I'm constantly selling out so apparently 'filler' oils are popular where I am as I never use the soap 'triad' together. My cost is about 1-1.75 per bar for the bar alone. I use about 85% organic oils. My bars are 7-9 retail.

 

[AnnaMarie]

This is an interesting thread. I've wondered about other soap maker's pricing as well because some bars are so cheap- and then I look at the ingredients. My cost per bar without packaging and labor ranges from a little over a dollar to about $2.50. I use good ingredients in my soap and I am generous with the luxury oils. I find that fragrances and essential oils are really what drive the price up. I do want good quality stuff, but I don't want to break the bank either. Maybe someone can suggest a place that has quality fragrance and essential oils at great prices?

 

[elmtree]

New Directions Aromatics, WSP,
Brambleberry (they can take awhile tho), and amazon sometimes has EO's on sale with their suppliers. Also, natures garden and Bulk Apothecary. I also don't skimp with fragrance or eo especially in a rinse off product. People want to be able to smell the soap scent clearly even after it's been on your shelf for 6 months so I use the max.

 

[soap_rat]

cmzaha, it looks like you said that palm shortening gives a different feel to the soap, vs regular palm oil? I just want to double-check, that's intriguing and i might get some to play with if that's the case.

Yes, you can do will-call at Soaper's Choice--and I'm buying my olive oil from costco instead. (For one, it's nice to have SOMETHING in smaller containers, plus I'm not getting as big a mountain of stuff all at once)